Getting Out of Debt on a Tight Budget


Debt can cause an untold amount of stress, worry and sleepless nights to anyone trying to deal with it, but when you’re on a tight budget, it can bury you completely. When you don’t have a lot of spare cash, it can seem like paying down debts and becoming free from the financial burden is near impossible, especially if you have a lot of debts to deal with.

However, getting out of debt on a tight budget is not completely out of the question and even making small payments will make a difference. Of course, if you are barely managing to cover the rent and pay your bills, your efforts should be diverted solely to that, but if you have even a little cash left over at the end of the month, you should seriously consider using it to pay off your debts and secure a brighter financial future.

Here are some of the best ways to dig yourself out of debt when you’re on a tight budget:

Draw Up a Payment Plan

If you really want to get out of debt, but you’re on a tight budget, the best thing you can do is create your own payment plan. You can do this by going through all of your debts to work out exactly how much you owe and who you owe it to and then ranking your debts in order of the most pressing. Usually, the most pressing debts will be those with the highest interest rate or problematic terms.

Once you’ve ranked your debts, you will need to go through your finances to determine exactly how much you can afford to pay down your debts every month. There are specific debt pay down tools available from the likes of Bankrate, which will help you with this, and once you have a figure, you will be able to work out how best to split that money up to cover all of your debts and start really making a dent in those most pressing ones.

Set Up Automatic Payments

When you’re on a tight budget, you might feel that the fairly minuscule payments you’ve worked out you can afford aren’t really worth the effort, but in the case of debt, every little really does help. So, set up automatic payments to your debtors, to ensure that those small payments are always made, and to remove the temptation of you not bothering because you could use a little extra cash and you don’t think paying a couple of dollars will even make a dent in your debts.

If you do this, remember to take the monthly payments into account when drawing up your budget for the month, so that you don’t risk becoming overdrawn, and make sure that you check your accounts from time to time to ensure those payments are being made and there are no mistakes being made that could hijack your efforts to get yourself out of debt.

Tighten Your Belt

 


It might seem like a no-brainer that, if you want to get out of debt, you should tighten your belt, but so many people who are already on tight budgets don’t think that they can cut costs even further. Most of the time they are wrong, and there are always things that can be done to save even more money.

In order to determine how much more you could save, you will need to first create a spreadsheet with all of your incomings and outgoings on it. This will show you what you’re spending so you can determine where extra savings can be made. Even if you can save only a few dollars by switching to generic food brands or switching to a more affordable power company, it will make the world of difference and help y0u to get out of debt more rapidly.

Modify Your Spending Habits

If you want to take control of your financial situation, get and stay out of debt, you need to change the way you spend completely. Cutting costs, as mentioned above, is a great place to start, but it is not enough, on its own to help you get and stay out of debt in the long-term. What you need to do instead is to change your spending habits completely. If you’re the kind of person who thinks nothing about hitting the mall for a shopping spree every Sunday, or you’re always looking to upgrade to a bigger home or a better car, you need to learn how to be content with what you have and start spending less right now. You also need to learn how to live without debts. There are sometimes when debts are necessary and legitimate, such as mortgage debts and even credit card or fast cash advance debts that are taken out only to build credit history, and boost your credit score, and then paid off immediately, or debts which are accrued in the case of a real emergency, but for the most part, future debts should be avoided. Spending carefully only in what you need, with a few reasonable treats thrown in to make life fun is the only way to take control of your finances and get out of debt forever.

Consolidate Your Debts

You have to be careful with this because it does not always make paying debts off easier, but if you’re struggling with a lot of different debts and the monthly repayments are beyond your limited budget, taking out a loan to pay off all of your debts and consolidate them into one monthly payment can help you to get on top of things.

Seek Help


If despite trying to implement all of the above, you’re still struggling to pay off your debts, it might be worth contacting the National Foundation for Credit Counseling or similar organizations who can help you negotiate more manageable debt repayment plans with your creditors to give you the breathing space you need to move on with your life into a debt free future.

Living on a tight budget should not prevent your from getting out of debt, providing you really want to do it and these six tips should really help you with that.




 

The Meaningful Career Path: 4 Jobs Which Help People And Pay Well

Everyone who has a career wants to enjoy their job. There is nothing worse than waking up in the morning and having to drag your body out of bed. Not only is it stressful, but it is also depressing. The thing which stops most people from following a career path they love is money. Let’s face it; you have to pay the bills which means money takes on a greater importance. However, the truth is this doesn’t have to be the case. There are numerous jobs which are as well paid as they are rewarding. Below is a selection just to give you an insight.

Bail Bondsmen

When you think about a rewarding job, becoming a bail bondsman doesn’t spring to mind. But, think about it rationally for a moment. As Acme Bail points out, you get to give victims of the judicial system a chance for justice. Also, bail provides every defendant the opportunity to fight their case the best they can without being behind bars. For those who are guilty and skip bail, it is your job to track them down, return them to custody, and collect your money. For your troubles, the average wage begins at $25,000 but jumps to $75,000 and then $100,000 after a couple of years.

Neurosurgeon

From one extreme to another, the median pay for a person in this field is $380,000. To put that into perspective, the average wage in the US is $80,000. Even when you take into account student fees, a neurosurgeon is in pocket by almost $200,000. Of course, the pay is excellent, but the job is one of the most rewarding, too. According to Forbes, there is a 97% job satisfaction rate in this field. Recent studies suggest 52% of Americans are unhappy at work, so this number is off the charts.

Senior Construction Manager

If you are hands on in another way, construction is the career to follow. Like neurosurgeons, the majority of managers love their job. In fact, the number is 100%. Yes, the same poll by Forbes found that every person in this field they asked felt the job was meaningful. After all, it is a position which allows you to bring your ideas to life. Regarding the pay, the money is less than being in neurology, but $125,000 is not an amount to take lightly. Indeed, it is $45,000 a year more than the national salary average.

Aircraft Test Pilot

Even if you didn’t know 91% of people thought the job was meaningful, you would guess it anyway. Although air travel is the safest form of travel, it comes with a lot of dangers. Therefore, every base needs covering before a plane takes to the sky. As the test pilot, you are responsible for ensuring the aircraft follows company procedures to the letter. Anything which is out of place needs recording and fixing because you are in charge of 100s of lives. To reflect this, the median salary is $120,000.

If you think you can’t have your cake and eat it, tell that to the construction managers and bail guarantors of the world.

5 Tips for Catching Up on Bills After They’ve Gotten Behind

It’s easy to get behind on bills without even realizing it, especially in today’s uncertain economic times. You could easily miss the electric bill and realize that you now owe two month’s worth at once. There are a few tricks to saving or making money where you can and catching up on bills after they’ve gotten behind, but it takes work and dedication. With these five tips, you should be able to get caught back up sooner than you think and any permanent damage is done.

Choose a Cheaper TV Bundle

If you’re struggling to pay your bills, having the biggest TV bundle isn’t the best idea. Pick a cheaper bundle that will still allow you to get some channels you like without costing an arm and a leg. Choose the bundle for you through your television provider by seeing which options are most affordable and which have at least a few of the shows you regularly watch. You wouldn’t want to miss some of your favorite episodes.

Dine In, Not Out

It is far cheaper to eat at home than it is to dine out at a restaurant. Shop sales when you get groceries and find affordable ingredients you can use to make meals. If you live alone, you can eat for cheap if you get the right foods from the store. It may be a bit trickier if you have a family to feed, but the same rule still applies. Dine in and not out and you will see how much you save. This goes for work lunches as well. Bring a bagged lunch from home rather than going out with coworkers or getting something from the vending machines. You may think you’re only spending a few dollars, but that adds up quickly week after week.

Drink Water

Not only is it healthier for you, but it saves you money as well. You can spend a lot less drinking the tap water you already pay for than you would going out and buying soft drinks, chocolate milk, juice, and other beverages. If you don’t like the taste of tap water, or yours isn’t safe to drink, you would still spend a lot less buying some bottles of water for a few dollars a pack than you would getting all those other sugary drinks.

Handle Chores and Housework Yourself

Too many people pay a housekeeper to handle chores around the home. Many hire a handyman to fix things as well. When you’re in a tight spot, you really can’t afford these services. Save some money, at least for now, by handling some of the chores and housework yourself. If you truly need help getting it done, ask some family or friends if they have the experience. It would cost much less to offer them a small gift of thanks for helping than it does to hire an expensive professional.

Sell Unused Items

Sites like Craigslist, LetGo, and even Facebook garage sale pages have become increasingly popular over the years. Take advantage of these available options and sell any unused items you have in your home. You can quickly rack up some cash for bills if you sell things you no longer need. See what prices some of the stuff is going for and set a fair amount for your items.

If you don’t have any financial goals, that’s a sign your finances need an overhaul. You need to start mapping out plans for the future so you don’t get stuck in this spot again. With these five tips in mind, you can start to catch up on your bills after they’ve gotten behind and get your financial situation back under control. It will take some time and effort, but it will be worth it in the end when you’re back on track and creating savings in the process.